Nairobi — Postal Corporation of Kenya has installed a new wireless system to provide internet access in rural towns.

The new system is set to start operations following its launch by Transport and Communications minister John Michuki.

The commissioning of the project is among breakthroughs in the telecommunications sector that Mr Michuki has been parading to mark the 40th anniversary of Kenya's independence.

Based on satellite technology, it will provide affordable and fast internet access through 349 post offices situated in the country.

The project is an initiative of the government and UK firm, Spacenet International.

Mr Michuki announced that the Corporation will install computers in all the post offices for customers to use in sending and receiving e-mail.

It can also support a wide range of e-based services.

So far, over 500 systems have been installed in 79 post offices.

The Corporation has 400,000 letter boxes today, up from 30,812 at independence. It is phasing out its manual systems, replacing them with atuomated services.

The minister said that Telkom Kenya will face competition from other operators by June next year.